Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'UFP TECHNOLOGIES INC | ' |
Entity Central Index Key | '0000914156 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 6,887,191 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $38,232,943 | $33,479,519 |
Receivables, less allowance for doubtful accounts of $483,722 at September 30, 2013 and $494,891 at December 31, 2012 | 17,806,326 | 17,835,902 |
Inventories | 9,897,219 | 9,695,060 |
Prepaid expenses | 927,663 | 653,916 |
Refundable income taxes | ' | 1,713,687 |
Deferred income taxes | 1,130,677 | 1,115,959 |
Total current assets | 67,994,828 | 64,494,043 |
Property, plant, and equipment | 64,550,643 | 59,569,202 |
Less accumulated depreciation and amortization | -38,874,322 | -36,250,906 |
Net property, plant, and equipment | 25,676,321 | 23,318,296 |
Goodwill | 7,322,131 | 7,038,631 |
Intangible assets, net | 1,465,741 | 2,083,941 |
Other assets | 1,881,231 | 1,682,529 |
Total assets | 104,340,252 | 98,617,440 |
Current liabilities: | ' | ' |
Accounts payable | 3,559,245 | 4,088,003 |
Accrued expenses | 5,844,417 | 7,592,842 |
Current installments of long-term debt | 1,552,090 | 1,550,190 |
Total current liabilities | 10,955,752 | 13,231,035 |
Long-term debt, excluding current installments | 7,735,917 | 8,313,709 |
Deferred income taxes | 1,593,704 | 1,589,654 |
Retirement and other liabilities | 2,464,314 | 2,222,238 |
Total liabilities | 22,749,687 | 25,356,636 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $.01 par value. Authorized 1,000,000 shares; no shares issued or outstanding | ' | ' |
Common stock, $.01 par value. Authorized 20,000,000 shares; issued and outstanding 6,883,441 at September 30, 2013, and 6,749,913 at December 31, 2012 | 68,834 | 67,499 |
Additional paid-in capital | 19,668,350 | 19,238,934 |
Retained earnings | 61,853,381 | 53,954,371 |
Total stockholders' equity | 81,590,565 | 73,260,804 |
Total liabilities and stockholders' equity | $104,340,252 | $98,617,440 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Allowance for doubtful accounts receivable | $483,722 | $494,891 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, Authorized shares | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, Authorized shares | 20,000,000 | 20,000,000 |
Common stock, issued shares | 6,883,441 | 6,749,913 |
Common stock, outstanding shares | 6,883,441 | 6,749,913 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Condensed Consolidated Statements of Income | ' | ' | ' | ' |
Net sales | $34,700,192 | $31,966,826 | $104,229,431 | $97,591,654 |
Cost of sales | 24,537,759 | 22,740,944 | 74,445,793 | 69,473,855 |
Gross profit | 10,162,433 | 9,225,882 | 29,783,638 | 28,117,799 |
Selling, general & administrative expenses | 5,678,614 | 5,155,712 | 17,699,636 | 16,065,994 |
Loss (Gain) on sale of fixed assets | ' | ' | 11,207 | -12,363 |
Operating income | 4,483,819 | 4,070,170 | 12,072,795 | 12,064,168 |
Interest expense, net | -42,981 | -13,739 | -128,166 | -43,247 |
Other expenses | ' | ' | ' | -2,058 |
Income before income tax expense | 4,440,838 | 4,056,431 | 11,944,629 | 12,018,863 |
Income tax expense | 1,554,293 | 1,460,158 | 4,045,619 | 4,326,790 |
Net income | $2,886,545 | $2,596,273 | $7,899,010 | $7,692,073 |
Net income per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.42 | $0.39 | $1.16 | $1.15 |
Diluted (in dollars per share) | $0.41 | $0.37 | $1.11 | $1.09 |
Weighted average common shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 6,839,556 | 6,720,756 | 6,802,245 | 6,667,895 |
Diluted (in shares) | 7,111,849 | 7,074,631 | 7,095,851 | 7,055,397 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' |
Net income | $7,899,010 | $7,692,073 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 2,981,616 | 2,117,538 |
(Gain) Loss on sale of fixed assets | 11,207 | -12,363 |
Share-based compensation | 707,453 | 679,340 |
Excess tax benefit on share-based compensation | -7,552 | -327,707 |
Deferred income taxes | -10,668 | 337,956 |
Changes in operating assets and liabilities: | ' | ' |
Receivables, net | 29,576 | -1,349,442 |
Inventories | -202,159 | 739,351 |
Taxes receivable | 1,713,687 | 288,118 |
Prepaid expenses | -273,747 | -38,204 |
Accounts payable | -528,758 | 300,479 |
Accrued taxes and other expenses | -785,830 | 418,668 |
Retirement and other liabilities | 242,076 | 236,336 |
Other assets | -235,511 | -259,647 |
Net cash provided by operating activities | 11,540,400 | 10,822,496 |
Cash flows from investing activities: | ' | ' |
Additions to property, plant, and equipment | -5,017,441 | -8,048,911 |
Holdback payment related to the acquisition of Packaging Alternatives Corporation | -600,000 | ' |
Proceeds from sale of fixed assets | 1,293 | 12,363 |
Redemption of cash value life insurance | 36,809 | 131,621 |
Net cash used in investing activities | -5,579,339 | -7,904,927 |
Cash flows from financing activities: | ' | ' |
Proceeds from the issuance of long-term debt | 579,650 | ' |
Principal repayments of long-term debt | -1,155,542 | -435,496 |
Proceeds from exercise of stock options, net of attestation | 334,475 | 365,237 |
Excess tax benefit on share-based compensation | 7,552 | 327,707 |
Payment of statutory withholdings for stock options exercised and restricted stock units vested | -973,772 | -672,284 |
Distribution to United Development Company Limited (non-controlling interests) | ' | -1,196,223 |
Net cash used in financing activities | -1,207,637 | -1,611,059 |
Net increase in cash and cash equivalents | 4,753,424 | 1,306,510 |
Cash and cash equivalents at beginning of period | 33,479,519 | 29,848,798 |
Cash and cash equivalents at end of period | $38,232,943 | $31,155,308 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
(1) Basis of Presentation | |
The interim condensed consolidated financial statements of UFP Technologies, Inc. (the “Company”) presented herein, have been prepared pursuant to the rules of the Securities and Exchange Commission for quarterly reports on Form 10-Q and do not include all the information and note disclosures required by accounting principles generally accepted in the United States of America. These statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2012, included in the Company’s 2012 Annual Report on Form 10-K as filed with the Securities and Exchange Commission. | |
The condensed consolidated balance sheet as of September 30, 2013, the condensed consolidated statements of income for the three- and nine-month periods ended September 30, 2013, and 2012, and the condensed consolidated statements of cash flows for the nine-month periods ended September 30, 2013, and 2012, are unaudited but, in the opinion of management, include all adjustments (consisting of normal, recurring adjustments) necessary for a fair presentation of results for these interim periods. | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. | |
The results of operations for the three- and nine-month periods ended September 30, 2013, are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2013. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Supplemental Cash Flow Information | ' | |||||||
Supplemental Cash Flow Information | ' | |||||||
(2) Supplemental Cash Flow Information | ||||||||
Cash paid for interest and income taxes is as follows: | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Interest | $ | 128,702 | $ | 24,747 | ||||
Income taxes, net of refunds | $ | 2,026,854 | $ | 3,371,507 | ||||
During the nine-month periods ended September 30, 2013, and 2012, the Company permitted the exercise of stock options with exercise proceeds paid with the Company’s stock (“cashless” exercises) totaling $224,880 and $125,799, respectively. |
Fair_Value_Accounting
Fair Value Accounting | 9 Months Ended |
Sep. 30, 2013 | |
Fair Value Accounting | ' |
Fair Value Accounting | ' |
(3) Fair Value Accounting | |
The Company has other financial instruments, such as accounts receivable, accounts payable, and accrued expenses, which are stated at carrying amounts that approximate fair value because of the short maturity of those instruments. The carrying amount of the Company’s long-term debt approximates fair value as the interest rate on the debt approximates the estimated borrowing rate currently available to the Company. |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Share-Based Compensation | ' | |||||||||||||
Share-Based Compensation | ' | |||||||||||||
(4) Share-Based Compensation | ||||||||||||||
Share-based compensation cost is measured at the grant date based on the calculated fair value of the award and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity grant). | ||||||||||||||
The Company issues share-based payments through several plans that are described in detail in the notes to the consolidated financial statements for the year ended December 31, 2012. The compensation cost charged against income for those plans is as follows: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Selling, general & administrative expense | $ | 199,967 | $ | 182,286 | $ | 707,453 | $ | 679,340 | ||||||
Share-based compensation for the nine-month periods ended September 30, 2013, and 2012, includes approximately $60,000 representing the fair value of the Company’s stock granted to the Board of Directors. | ||||||||||||||
The total income tax benefit recognized in the condensed consolidated statements of income for share-based compensation arrangements was approximately $58,000 and $55,000 for the three-month periods ended September 30, 2013, and 2012, respectively, and approximately $215,000 and $227,000 for the nine-month periods ended September 30, 2013, and 2012, respectively. | ||||||||||||||
The following is a summary of stock option activity under all plans for the nine-month period ended September 30, 2013: | ||||||||||||||
Shares Under | Weighted | Aggregate | ||||||||||||
Options | Average | Intrinsic Value | ||||||||||||
Exercise Price | ||||||||||||||
Outstanding at December 31, 2012 | 493,888 | $ | 5.47 | |||||||||||
Granted | 97,362 | 19.74 | ||||||||||||
Exercised | (117,500 | ) | 2.85 | |||||||||||
Cancelled or expired | — | — | ||||||||||||
Outstanding at September 30, 2013 | 473,750 | $ | 9.05 | $ | 6,498,890 | |||||||||
Options exercisable at September 30, 2013 | 367,500 | $ | 6.31 | $ | 6,048,878 | |||||||||
Vested and expected to vest at September 30, 2013 | 473,750 | $ | 9.05 | $ | 6,498,890 | |||||||||
On March 31, 2013, the Company granted to certain employees options for the purchase of 60,000 shares of its common stock at that day’s closing price of $18.85. On June 12, 2013, the Company granted to its directors options for the purchase of 7,362 shares of common stock at that day’s closing price of $19.08. On September 12, 2013, the Company granted to a certain employee options for the purchase of 30,000 shares of common stock at that day’s closing price of $21.67. The compensation expense for the above noted grants was determined as the fair value of the options using the Black Scholes option pricing model based on the following assumptions: | ||||||||||||||
Expected volatility | 34.0% - 50.0% | |||||||||||||
Expected dividends | none | |||||||||||||
Risk free interest rate | 0.4% - 0.7% | |||||||||||||
Expected term | 3.3 to 5.0 years | |||||||||||||
The stock volatility for each grant is determined based on a review of the experience of the weighted average of historical daily price changes of the Company’s common stock over the expected option term, and the risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. The weighted average grant date fair value of options granted during the nine-month period ended September 30, 2013, was $5.84. | ||||||||||||||
During the nine-month periods ended September 30, 2013, and 2012, the total intrinsic value of all options exercised (i.e., the difference between the market price on the exercise date and the price paid by the employees to exercise the options) was $2,070,527 and $2,028,138, respectively, and the total amount of consideration received from the exercised options was $334,475 and $491,036, respectively. | ||||||||||||||
During the three-month periods ended September 30, 2013, and 2012, the Company recognized compensation expenses related to stock options granted to directors and employees of $40,178 and $18,186, respectively. During the nine-month periods ended September 30, 2013, and 2012, the Company recognized compensation expenses related to stock options granted to directors and employees of $165,384 and $115,809, respectively. | ||||||||||||||
On February 18, 2013, the Company’s Compensation Committee approved the award of $400,000 payable in shares of common stock to the Company’s Chairman, Chief Executive Officer, and President under the 2003 Incentive Plan. The shares will be issued on or before December 31, 2013. The Company recorded compensation expense associated with the award of $100,000 and $300,000 during the three- and nine-month periods ended September 30, 2013. In the three- and nine-month periods ended September 30, 2012, the Company recorded $75,000 and $225,000, respectively, of compensation expense for an award of $300,000 that was payable in shares of common stock in December 2012. | ||||||||||||||
The following table summarizes information about Restricted Stock Units (“RSUs”) activity during the nine-month period ended September 30, 2013: | ||||||||||||||
Restricted | Weighted Average | |||||||||||||
Stock Units | Award Date | |||||||||||||
Fair Value | ||||||||||||||
Unvested at December 31, 2012 | 108,866 | $ | 8.77 | |||||||||||
Awarded | 10,600 | 19.97 | ||||||||||||
Shares vested | (61,635 | ) | 6.67 | |||||||||||
Forfeited / cancelled | (6,931 | ) | 13.23 | |||||||||||
Unvested at September 30, 2013 | 50,900 | $ | 11.64 | |||||||||||
During the three- and nine-month periods ended September 30, 2013, the Company recorded compensation expense related to RSUs of $59,789 and $182,069, respectively. The Company recorded compensation expense of $89,100 and $278,531, respectively, for the same periods of 2012. | ||||||||||||||
At its discretion, the Company allows option and RSU holders to surrender previously owned common stock in lieu of paying the minimum statutory withholding taxes due upon the exercise of options or the vesting of RSUs. During the nine-month periods ended September 30, 2013, and 2012, 37,796 and 39,700 shares were surrendered at an average market price of $19.81 and $16.93, respectively. | ||||||||||||||
At September 30, 2013, unrecognized compensation expense of $1,019,771 is expected to be recognized over a weighted average period of 1.18 years. |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
(5) Inventories | ||||||||
Inventories are stated at the lower of cost (first-in, first-out) or market, and consist of the following at the stated dates: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 5,915,297 | $ | 6,260,354 | ||||
Work in process | 974,597 | 675,228 | ||||||
Finished goods | 3,007,325 | 2,759,478 | ||||||
Total inventory | $ | 9,897,219 | $ | 9,695,060 |
Preferred_Stock
Preferred Stock | 9 Months Ended |
Sep. 30, 2013 | |
Preferred Stock | ' |
Preferred Stock | ' |
(6) Preferred Stock | |
On March 18, 2009, the Company declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of common stock, par value $0.01 per share, to the stockholders of record on March 20, 2009. Each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $0.01 per share (the “Preferred Share”) of the Company, at a price of $25 per one one-thousandth of a Preferred Share subject to adjustment and the terms of the Rights Agreement. The Rights expire on March 19, 2019. |
Income_Per_Share
Income Per Share | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Income Per Share | ' | |||||||||
Income Per Share | ' | |||||||||
(7) Income Per Share | ||||||||||
Basic income per share is based on the weighted average number of shares of common stock outstanding. Diluted income per share is based upon the weighted average of common shares and dilutive common stock equivalent shares outstanding during each period. | ||||||||||
The weighted average number of shares used to compute basic and diluted net income per share consisted of the following: | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||
Weighted average common shares outstanding, basic | 6,839,556 | 6,720,756 | 6,802,245 | 6,667,895 | ||||||
Weighted average common equivalent shares due to stock options and RSUs | 272,293 | 353,875 | 293,606 | 387,502 | ||||||
Weighted average common shares outstanding, diluted | 7,111,849 | 7,074,631 | 7,095,851 | 7,055,397 | ||||||
The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options, when the average market price of the common stock is lower than the exercise price of the related options during the period. These outstanding stock awards are not included in the computation of diluted income per share because the effect would have been antidilutive. For the three- and nine-month periods ended September 30, 2013, the number of stock awards excluded from the computation was 71,546 and 88,908, respectively. For the same three- and nine-month periods in 2012, the number of stock awards excluded from the computation was 10,000 and 17,700, respectively. |
Segment_Reporting
Segment Reporting | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Segment Reporting | ' | |||||||||||||||||
Segment Reporting | ' | |||||||||||||||||
(8) Segment Reporting | ||||||||||||||||||
The Company is organized based on the nature of the products and services it offers. Under this structure, the Company produces products within two distinct segments: Engineered Packaging and Component Products. Within the Engineered Packaging segment, the Company primarily uses polyethylene and polyurethane foams, sheet plastics, and pulp fiber to provide customers with protective cushion packaging for their products. Within the Component Products segment, the Company primarily uses cross-linked polyethylene and technical urethane foams to provide customers in the medical, aerospace, defense and automotive markets with custom-designed products for numerous purposes. | ||||||||||||||||||
The accounting policies of the segments are the same as those described in Note 1 to the consolidated financial statements contained in the Company’s annual report on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission. The Company evaluates the performance of its operating segments based on operating income. | ||||||||||||||||||
Inter-segment transactions are uncommon and not material. Therefore, they have not been reflected separately in the financial table below. Revenues from customers outside of the United States are not material. No customer comprised more than 5% of the Company’s consolidated revenues for the three-month period ended September 30, 2013. All of the Company’s assets are located in the United States. Unallocated assets consist of the Company’s cash balance. | ||||||||||||||||||
Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | |||||||||||||||||
Engineered | Component | Total | Engineered | Component | Total | |||||||||||||
Packaging | Products | UFPT | Packaging | Products | UFPT | |||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||
Net sales | 11,907,703 | 22,792,489 | 34,700,192 | 11,009,769 | 20,957,057 | 31,966,826 | ||||||||||||
Operating income | 1,945,130 | 2,538,689 | 4,483,819 | 982,942 | 3,087,228 | 4,070,170 | ||||||||||||
Depreciation / amortization | 600,523 | 404,513 | 1,005,036 | 339,238 | 373,461 | 712,699 | ||||||||||||
Capital expenditures | 301,152 | 1,171,562 | 1,472,714 | 3,053,238 | (33,601 | ) | 3,019,637 | |||||||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | |||||||||||||||||
Engineered | Component | Unallocated | Total | Engineered | Component | Unallocated | Total | |||||||||||
Packaging | Products | Assets | UFPT | Packaging | Products | Assets | UFPT | |||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | |||||||||||
Net sales | 33,778,139 | 70,451,292 | — | 104,229,431 | 31,233,197 | 66,358,457 | — | 97,591,654 | ||||||||||
Operating income | 3,576,280 | 8,496,515 | — | 12,072,795 | 1,990,671 | 10,073,497 | — | 12,064,168 | ||||||||||
Depreciation / amortization | 1,669,407 | 1,312,209 | — | 2,981,616 | 1,061,483 | 1,056,055 | — | 2,117,538 | ||||||||||
Capital expenditures | 2,898,255 | 2,119,186 | — | 5,017,441 | 6,385,763 | 1,663,148 | — | 8,048,911 | ||||||||||
Total assets | 31,444,726 | 34,662,583 | 38,232,943 | 104,340,252 | 27,686,738 | 28,686,295 | 31,155,308 | 87,528,341 |
Other_Intangible_Assets
Other Intangible Assets | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Other Intangible Assets | ' | |||||||||||||
Other Intangible Assets | ' | |||||||||||||
(9) Other Intangible Assets | ||||||||||||||
The carrying values of the company’s definite lived intangible assets as of September 30, 2013, and December 31, 2012, are as follows: | ||||||||||||||
Patents | Non-compete | Customer list | Total | |||||||||||
Estimated useful life | 14 years | 5 years | 5 years | |||||||||||
Gross amount at September 30, 2013 | $ | 428,806 | $ | 512,000 | $ | 2,046,436 | $ | 2,987,242 | ||||||
Accumulated amortization at September 30, 2013 | (428,806 | ) | (225,800 | ) | (866,895 | ) | (1,521,501 | ) | ||||||
Net balance at September 30, 2013 | $ | — | $ | 286,200 | $ | 1,179,541 | $ | 1,465,741 | ||||||
Gross amount at December 31, 2012 | $ | 428,806 | $ | 512,000 | $ | 2,306,436 | $ | 3,247,242 | ||||||
Accumulated amortization at December 31, 2012 | (428,806 | ) | (156,500 | ) | (577,995 | ) | (1,163,301 | ) | ||||||
Net balance at December 31, 2012 | $ | — | $ | 355,500 | $ | 1,728,441 | $ | 2,083,941 | ||||||
Amortization expense related to intangible assets was $119,400 and $40,051 for the three-month periods ended September 30, 2013, and 2012, respectively, and $358,200 and $123,707 for the nine-month periods ended September 30, 2013, and 2012, respectively. Future amortization will be: | ||||||||||||||
Remainder of: | ||||||||||||||
2013 | $ | 119,400 | ||||||||||||
2014 | 392,933 | |||||||||||||
2015 | 317,796 | |||||||||||||
2016 | 317,796 | |||||||||||||
2017 | 317,816 | |||||||||||||
Total | $ | 1,465,741 | ||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes | ' |
Income Taxes | ' |
(10) Income Taxes | |
The income tax expense included in the accompanying unaudited consolidated statements of income principally relates to the Company’s proportionate share of the pre-tax income of its majority-owned subsidiaries. The determination of income tax expense for interim reporting purposes is based upon the estimated effective tax rate for the year, adjusted for the impact of any discrete items which are accounted for in the period in which they occur. | |
The Company recorded a tax expense of approximately 35.0% of income before income tax expense for the three-month period ended September 30, 2013, compared to a tax expense of approximately 36.0% for the comparable three-month period in 2012. The Company recorded a tax expense of approximately 33.9% of income before income tax expense for the nine-month period ended September 30, 2013, compared to a tax expense of approximately 36.0% for the comparable nine-month period in 2012. The effective tax rate for the nine months ended September 30, 2013, includes a discrete event for a retroactive application for a 2012 research and development credit. The American Taxpayer Relief Act of 2012 was passed by Congress and signed into law on January 1, 2013. The provisions under this law are to be applied retroactively to January 1, 2012. As a result of the law being signed on January 1, 2013, the financial impact of the retroactive provision was recorded as a discrete event in the first quarter of 2013. The Company recorded a reduction to tax expense in the first quarter of 2013 by $135,000. Excluding this discrete event, the effective tax rate for the nine months ended September 30, 2013, was 35.0%. |
Acquisition
Acquisition | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Acquisition | ' | |||||||
Acquisition | ' | |||||||
(11) Acquisition | ||||||||
On December 31, 2012, the Company acquired substantially all of the assets of Packaging Alternatives Corporation (“PAC”), a Costa Mesa, California-based, foam fabricator, for $5.7 million. The Consolidated Statement of Income for the three- and nine-month periods ended September 30, 2013, include the following results for PAC: | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
2013 | 2013 | |||||||
Sales | $ | 2,514,043 | $ | 7,866,078 | ||||
Operating income | 39,934 | 251,774 | ||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Supplemental Cash Flow Information | ' | |||||||
Schedule of cash paid for interest and income taxes | ' | |||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Interest | $ | 128,702 | $ | 24,747 | ||||
Income taxes, net of refunds | $ | 2,026,854 | $ | 3,371,507 |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Share-Based Compensation | ' | |||||||||||||
Schedule of the compensation cost charged against income for plans | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Selling, general & administrative expense | $ | 199,967 | $ | 182,286 | $ | 707,453 | $ | 679,340 | ||||||
Schedule of stock option activity under all plans | ' | |||||||||||||
Shares Under | Weighted | Aggregate | ||||||||||||
Options | Average | Intrinsic Value | ||||||||||||
Exercise Price | ||||||||||||||
Outstanding at December 31, 2012 | 493,888 | $ | 5.47 | |||||||||||
Granted | 97,362 | 19.74 | ||||||||||||
Exercised | (117,500 | ) | 2.85 | |||||||||||
Cancelled or expired | — | — | ||||||||||||
Outstanding at September 30, 2013 | 473,750 | $ | 9.05 | $ | 6,498,890 | |||||||||
Options exercisable at September 30, 2013 | 367,500 | $ | 6.31 | $ | 6,048,878 | |||||||||
Vested and expected to vest at September 30, 2013 | 473,750 | $ | 9.05 | $ | 6,498,890 | |||||||||
Schedule of assumptions used to determine the fair value of options using Black Scholes option pricing model | ' | |||||||||||||
Expected volatility | 34.0% - 50.0% | |||||||||||||
Expected dividends | none | |||||||||||||
Risk free interest rate | 0.4% - 0.7% | |||||||||||||
Expected term | 3.3 to 5.0 years | |||||||||||||
Summary of Restricted Stock Units ( RSUs ) activity | ' | |||||||||||||
Restricted | Weighted Average | |||||||||||||
Stock Units | Award Date | |||||||||||||
Fair Value | ||||||||||||||
Unvested at December 31, 2012 | 108,866 | $ | 8.77 | |||||||||||
Awarded | 10,600 | 19.97 | ||||||||||||
Shares vested | (61,635 | ) | 6.67 | |||||||||||
Forfeited / cancelled | (6,931 | ) | 13.23 | |||||||||||
Unvested at September 30, 2013 | 50,900 | $ | 11.64 | |||||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventories | ' | |||||||
Schedule of inventories | ' | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 5,915,297 | $ | 6,260,354 | ||||
Work in process | 974,597 | 675,228 | ||||||
Finished goods | 3,007,325 | 2,759,478 | ||||||
Total inventory | $ | 9,897,219 | $ | 9,695,060 |
Income_Per_Share_Tables
Income Per Share (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Income Per Share | ' | |||||||||
Schedule of the weighted average number of shares used to compute basic and diluted net income per share | ' | |||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||
Weighted average common shares outstanding, basic | 6,839,556 | 6,720,756 | 6,802,245 | 6,667,895 | ||||||
Weighted average common equivalent shares due to stock options and RSUs | 272,293 | 353,875 | 293,606 | 387,502 | ||||||
Weighted average common shares outstanding, diluted | 7,111,849 | 7,074,631 | 7,095,851 | 7,055,397 |
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Segment Reporting | ' | |||||||||||||||||
Schedule of segment reporting | ' | |||||||||||||||||
Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | |||||||||||||||||
Engineered | Component | Total | Engineered | Component | Total | |||||||||||||
Packaging | Products | UFPT | Packaging | Products | UFPT | |||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||
Net sales | 11,907,703 | 22,792,489 | 34,700,192 | 11,009,769 | 20,957,057 | 31,966,826 | ||||||||||||
Operating income | 1,945,130 | 2,538,689 | 4,483,819 | 982,942 | 3,087,228 | 4,070,170 | ||||||||||||
Depreciation / amortization | 600,523 | 404,513 | 1,005,036 | 339,238 | 373,461 | 712,699 | ||||||||||||
Capital expenditures | 301,152 | 1,171,562 | 1,472,714 | 3,053,238 | (33,601 | ) | 3,019,637 | |||||||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | |||||||||||||||||
Engineered | Component | Unallocated | Total | Engineered | Component | Unallocated | Total | |||||||||||
Packaging | Products | Assets | UFPT | Packaging | Products | Assets | UFPT | |||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | |||||||||||
Net sales | 33,778,139 | 70,451,292 | — | 104,229,431 | 31,233,197 | 66,358,457 | — | 97,591,654 | ||||||||||
Operating income | 3,576,280 | 8,496,515 | — | 12,072,795 | 1,990,671 | 10,073,497 | — | 12,064,168 | ||||||||||
Depreciation / amortization | 1,669,407 | 1,312,209 | — | 2,981,616 | 1,061,483 | 1,056,055 | — | 2,117,538 | ||||||||||
Capital expenditures | 2,898,255 | 2,119,186 | — | 5,017,441 | 6,385,763 | 1,663,148 | — | 8,048,911 | ||||||||||
Total assets | 31,444,726 | 34,662,583 | 38,232,943 | 104,340,252 | 27,686,738 | 28,686,295 | 31,155,308 | 87,528,341 |
Other_Intangible_Assets_Tables
Other Intangible Assets (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Other Intangible Assets | ' | |||||||||||||
Schedule of carrying values of definite-lived intangible assets | ' | |||||||||||||
Patents | Non-compete | Customer list | Total | |||||||||||
Estimated useful life | 14 years | 5 years | 5 years | |||||||||||
Gross amount at September 30, 2013 | $ | 428,806 | $ | 512,000 | $ | 2,046,436 | $ | 2,987,242 | ||||||
Accumulated amortization at September 30, 2013 | (428,806 | ) | (225,800 | ) | (866,895 | ) | (1,521,501 | ) | ||||||
Net balance at September 30, 2013 | $ | — | $ | 286,200 | $ | 1,179,541 | $ | 1,465,741 | ||||||
Gross amount at December 31, 2012 | $ | 428,806 | $ | 512,000 | $ | 2,306,436 | $ | 3,247,242 | ||||||
Accumulated amortization at December 31, 2012 | (428,806 | ) | (156,500 | ) | (577,995 | ) | (1,163,301 | ) | ||||||
Net balance at December 31, 2012 | $ | — | $ | 355,500 | $ | 1,728,441 | $ | 2,083,941 | ||||||
Schedule of future amortization expense related to intangible assets | ' | |||||||||||||
Remainder of: | ||||||||||||||
2013 | $ | 119,400 | ||||||||||||
2014 | 392,933 | |||||||||||||
2015 | 317,796 | |||||||||||||
2016 | 317,796 | |||||||||||||
2017 | 317,816 | |||||||||||||
Total | $ | 1,465,741 | ||||||||||||
Acquisition_Tables
Acquisition (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Acquisition | ' | |||||||
Schedule of the results of acquiree included in the consolidated statement of income | ' | |||||||
Three Months Ended | Nine Months Ended | |||||||
September 30, | September 30, | |||||||
2013 | 2013 | |||||||
Sales | $ | 2,514,043 | $ | 7,866,078 | ||||
Operating income | 39,934 | 251,774 | ||||||
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Supplemental Cash Flow Information | ' | ' |
Interest | $128,702 | $24,747 |
Income taxes, net of refunds | 2,026,854 | 3,371,507 |
Cashless exercises | $224,880 | $125,799 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Board of Directors | ' | ' | ' | ' |
Share-Based Compensation | ' | ' | ' | ' |
Total income tax benefit recognized | $58,000 | $55,000 | $215,000 | $227,000 |
Fair value of stock granted to the Board of Directors as a part of annual retainer | ' | ' | 60,000 | 60,000 |
Selling, general & administrative expense | ' | ' | ' | ' |
Share-Based Compensation | ' | ' | ' | ' |
Total share-based compensation expense | $199,967 | $182,286 | $707,453 | $679,340 |
ShareBased_Compensation_Detail1
Share-Based Compensation (Details 2) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 12, 2013 | Mar. 31, 2013 | Jun. 12, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 18, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Options | Options | Options | Options | Options | Options | Employee options | Employee options | Director options | RSUs | RSUs | RSUs | RSUs | 2003 Incentive Plan | 2003 Incentive Plan | 2003 Incentive Plan | 2003 Incentive Plan | 2003 Incentive Plan | 2003 Incentive Plan | |||
Maximum | Minimum | Chairman, Chief Executive Officer, and President | Chairman, Chief Executive Officer, and President | Chairman, Chief Executive Officer, and President | Chairman, Chief Executive Officer, and President | Chairman, Chief Executive Officer, and President | Chairman, Chief Executive Officer, and President | ||||||||||||||
Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | ||||||||||||||||
Shares Under Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | ' | ' | 493,888 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | 97,362 | ' | ' | ' | 30,000 | 60,000 | 7,362 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | ' | -117,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in shares) | ' | ' | 473,750 | ' | 473,750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable at the end of the period (in shares) | ' | ' | 367,500 | ' | 367,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period (in shares) | ' | ' | 473,750 | ' | 473,750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | ' | ' | ' | $5.47 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | $19.74 | ' | ' | ' | $21.67 | $18.85 | $19.08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | ' | $2.85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars per share) | ' | ' | $9.05 | ' | $9.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable at the end of the period (in dollars per share) | ' | ' | $6.31 | ' | $6.31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period (in dollars per share) | ' | ' | $9.05 | ' | $9.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period | ' | ' | $6,498,890 | ' | $6,498,890 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable at the end of the period | ' | ' | 6,048,878 | ' | 6,048,878 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period | ' | ' | 6,498,890 | ' | 6,498,890 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assumptions used to determine the intrinsic fair market value of options using Black Scholes option pricing model | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | ' | ' | ' | ' | 50.00% | 34.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividends (as a percent) | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk free interest rate (as a percent) | ' | ' | ' | ' | ' | ' | 0.70% | 0.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected term | ' | ' | ' | ' | ' | ' | '5 years | '3 years 3 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant date fair value of options granted (in dollars per share) | ' | ' | ' | ' | $5.84 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The total intrinsic value of all options exercised | ' | ' | ' | ' | 2,070,527 | 2,028,138 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Stock Units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 108,866 | ' | ' | ' | ' | ' | ' | ' |
Awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | 300,000 |
Awarded (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,600 | ' | ' | ' | ' | ' | ' | ' |
Shares vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -61,635 | ' | ' | ' | ' | ' | ' | ' |
Forfeited / cancelled (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6,931 | ' | ' | ' | ' | ' | ' | ' |
Unvested at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,900 | ' | 50,900 | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Award Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.77 | ' | ' | ' | ' | ' | ' | ' |
Awarded (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $19.97 | ' | ' | ' | ' | ' | ' | ' |
Shares vested (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.67 | ' | ' | ' | ' | ' | ' | ' |
Forfeited / cancelled (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13.23 | ' | ' | ' | ' | ' | ' | ' |
Unvested at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11.64 | ' | $11.64 | ' | ' | ' | ' | ' | ' | ' |
Additional share-based compensation disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total amount of consideration received from the exercised options | ' | ' | ' | ' | 334,475 | 491,036 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense | ' | ' | 40,178 | 18,186 | 165,384 | 115,809 | ' | ' | ' | ' | ' | 59,789 | 89,100 | 182,069 | 278,531 | ' | 100,000 | 75,000 | 300,000 | 225,000 | ' |
Shares surrendered in lieu of payment of withholding taxes (in shares) | 37,796 | 39,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average market price of shares surrendered in lieu of payment of withholding taxes (in dollars per share) | $19.81 | $16.93 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense | $1,019,771 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period of recognition of unrecognized compensation expense | '1 year 2 months 5 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Inventories | ' | ' |
Raw materials | $5,915,297 | $6,260,354 |
Work in process | 974,597 | 675,228 |
Finished goods | 3,007,325 | 2,759,478 |
Total inventory | $9,897,219 | $9,695,060 |
Preferred_Stock_Details
Preferred Stock (Details) (USD $) | 0 Months Ended | ||
Mar. 18, 2009 | Sep. 30, 2013 | Dec. 31, 2012 | |
right | |||
Preferred Stock | ' | ' | ' |
Number of preferred share purchase rights declared as dividend for each outstanding share of common stock | 1 | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 |
Number of shares of Series A Junior Participating Preferred Stock that each right entitles the registered holder to purchase | 0.001 | ' | ' |
Par value of Series A Junior Participating Preferred Stock (in dollars per share) | $0.01 | $0.01 | $0.01 |
Purchase price of Series A Junior Participating Preferred Stock (in dollars per one one-thousandth of a share) | 25 | ' | ' |
Income_Per_Share_Details
Income Per Share (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Per Share | ' | ' | ' | ' |
Weighted average common shares outstanding, basic | 6,839,556 | 6,720,756 | 6,802,245 | 6,667,895 |
Weighted average common equivalent shares due to stock options and RSUs | 272,293 | 353,875 | 293,606 | 387,502 |
Weighted average common shares outstanding, diluted | 7,111,849 | 7,074,631 | 7,095,851 | 7,055,397 |
Number of stock awards excluded from the computation of diluted income per share | 71,546 | 10,000 | 88,908 | 17,700 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
item | |||||
Segment Reporting | ' | ' | ' | ' | ' |
Number of distinct segments | ' | ' | 2 | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' |
Net sales | $34,700,192 | $31,966,826 | $104,229,431 | $97,591,654 | ' |
Operating income | 4,483,819 | 4,070,170 | 12,072,795 | 12,064,168 | ' |
Depreciation / amortization | 1,005,036 | 712,699 | 2,981,616 | 2,117,538 | ' |
Capital expenditures | 1,472,714 | 3,019,637 | 5,017,441 | 8,048,911 | ' |
Total assets | 104,340,252 | 87,528,341 | 104,340,252 | 87,528,341 | 98,617,440 |
Unallocated Assets | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' |
Total assets | 38,232,943 | 31,155,308 | 38,232,943 | 31,155,308 | ' |
Engineered Packaging | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' |
Net sales | 11,907,703 | 11,009,769 | 33,778,139 | 31,233,197 | ' |
Operating income | 1,945,130 | 982,942 | 3,576,280 | 1,990,671 | ' |
Depreciation / amortization | 600,523 | 339,238 | 1,669,407 | 1,061,483 | ' |
Capital expenditures | 301,152 | 3,053,238 | 2,898,255 | 6,385,763 | ' |
Total assets | 31,444,726 | 27,686,738 | 31,444,726 | 27,686,738 | ' |
Component Products | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' |
Net sales | 22,792,489 | 20,957,057 | 70,451,292 | 66,358,457 | ' |
Operating income | 2,538,689 | 3,087,228 | 8,496,515 | 10,073,497 | ' |
Depreciation / amortization | 404,513 | 373,461 | 1,312,209 | 1,056,055 | ' |
Capital expenditures | 1,171,562 | -33,601 | 2,119,186 | 1,663,148 | ' |
Total assets | $34,662,583 | $28,686,295 | $34,662,583 | $28,686,295 | ' |
Other_Intangible_Assets_Detail
Other Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Other Intangible Assets | ' | ' | ' | ' | ' |
Gross amount | $2,987,242 | ' | $2,987,242 | ' | $3,247,242 |
Accumulated amortization | -1,521,501 | ' | -1,521,501 | ' | -1,163,301 |
Net balance | 1,465,741 | ' | 1,465,741 | ' | 2,083,941 |
Amortization expense related to intangible assets | 119,400 | 40,051 | 358,200 | 123,707 | ' |
Future amortization | ' | ' | ' | ' | ' |
2013 | 119,400 | ' | 119,400 | ' | ' |
2014 | 392,933 | ' | 392,933 | ' | ' |
2015 | 317,796 | ' | 317,796 | ' | ' |
2016 | 317,796 | ' | 317,796 | ' | ' |
2017 | 317,816 | ' | 317,816 | ' | ' |
Total | 1,465,741 | ' | 1,465,741 | ' | ' |
Patents | ' | ' | ' | ' | ' |
Other Intangible Assets | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | '14 years | ' | ' |
Gross amount | 428,806 | ' | 428,806 | ' | 428,806 |
Accumulated amortization | -428,806 | ' | -428,806 | ' | -428,806 |
Non-compete | ' | ' | ' | ' | ' |
Other Intangible Assets | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | '5 years | ' | ' |
Gross amount | 512,000 | ' | 512,000 | ' | 512,000 |
Accumulated amortization | -225,800 | ' | -225,800 | ' | -156,500 |
Net balance | 286,200 | ' | 286,200 | ' | 355,500 |
Customer list | ' | ' | ' | ' | ' |
Other Intangible Assets | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | '5 years | ' | ' |
Gross amount | 2,046,436 | ' | 2,046,436 | ' | 2,306,436 |
Accumulated amortization | -866,895 | ' | -866,895 | ' | -577,995 |
Net balance | $1,179,541 | ' | $1,179,541 | ' | $1,728,441 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Taxes | ' | ' | ' | ' | ' |
Effective tax rate (as a percent) | 35.00% | ' | 36.00% | 33.90% | 36.00% |
Reduction of tax expense due to changes in applicable tax law | ' | $135,000 | ' | ' | ' |
Effective tax rate excluding the effect of the change in applicable tax law (as a percent) | ' | ' | ' | 35.00% | ' |
Acquisition_Details
Acquisition (Details) (PAC, USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
PAC | ' | ' | ' |
Acquisition | ' | ' | ' |
Purchase price | ' | ' | $5,700,000 |
Sales | 2,514,043 | 7,866,078 | ' |
Operating income | $39,934 | $251,774 | ' |